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Summary Consumer Behaviour
Consumer Behaviour Summary of all chapter
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! 1! ! 2!Chapter 1: AN INTRODUCTION TO THE STUDY OF -Consumer wants are neglected
CONSUMER BEHAVIOUR This concept -> Kodak (late intro to digital cameras), Nokia (late into to smart
phones), Levi Strauss (in mid-90s didn’t produce colourful jeans) -> leads to
Consumer Behaviour Marketing myopia
The behaviour that consumers display in searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will satisfy ! Sales Orientation
their needs. -From the 1930s to the mid 1950s
-Focus on selling
It includes all the decisions a consumer makes when spending their time and money. -Supply exceeded customer demand
The what, why, when, where, and how of consumer purchases are examined in -Consumers are aggressively persuaded
consumer behaviour. It is not just individuals, but households, families, and groups
that influence the decisions we make. There was overproduction during the production orientation, which led to excess
There are many online sites which influence us as consumers either in the product. Although the products were still similar and there was little variation, during
information gathering, decision making, or final purchasing part of our decisions. the sales orientation period, the manufacturers focused on selling the product which
they had overproduced.
Two consumer entities Nowadays, used heavily for unsought goods – such as insurances and political
parties
! Marketing concept
-1950s to current - Focus on the customer!
-Determine the needs and wants of specific target markets
-Deliver satisfaction better than competition
Rather than focus on what can be manufactured, the focus shifts with the marketing
concept to what consumers prefer. It became a time to put the customer first and to
understand their needs and wants. With this information, marketers can deliver
satisfaction to their target markets. We are remaining focused on the marketing
The personal consumer is sometimes called the end user or ultimate consumer. concept today as marketers become more sophisticated in understanding the
This is you when you go to Best Buy to purchase a new television for your home. consumer and in delivering products that meet their needs.
The organizational consumer is buying for the organization or to re-sell to the
personal consumer. Although both types of consumer entities are important, we will
be focusing on the personal consumer throughout these presentations. Societal Marketing Concept
-Considers consumers’ long-run best interest
Development of the Marketing concept -Good corporate citizenship
The societal marketing concept was developed from the marketing concept.
Marketers and consumers are increasingly taking stock of what is good for
themselves, their family, their country, and the planet. Marketing looks for
opportunities to provide products and services to help consumers reach their goals
while also making profitable decisions for their companies. The image in this slide of
The marketing concept was developed over time through two other important a Siemens ad (windmühlen im Wasser) suggests the company is committed to
business orientations called the production, product and the sales orientation. developing products that are safe for customers and the environment.
They will be discussed in more detail on the following slides:
! Production orientation
During the production orientation, companies wanted efficient production lines to
mass produce products for the consumer. Because the demand was higher than the
supply, consumers were content to get a product and were not focused on product
variation. This was the time that the control was in the hands of the producers who
said, “if we make it they will buy it.”
! Product Orientation
Product: “if we make it they will buy it.”
-Companies focus on product features and quality
-Common in competitive industries
, ! 3! ! 4!
The Marketing Concept identified their segment, they can choose media that is targeted to that segment for
their advertising.
!Consumer research:
Bases for segmentation
All companies must continually conduct research to understand the needs and
priorities of their market segments.
!Segmentation:
This two-by-two matrix is important for understanding types of segmentation
schemes. It is possible to break segmentation into two broad groups –
1. those that are based on the consumers themselves and
2. those that are based on the consumers’ interaction or potential interaction with the
product and are therefore consumption based.
Within each of these two larger types of schemes, segmentation variables can be
considered to be based on
1. facts or what is absolutely known and measureable about the consumer versus
2. cognitions, which are abstract and can be determined only through more complex
questioning.
Consumer needs are shaped by the environment, culture, education, and life
experiences. Marketers perform segmentation by looking for groups with common ! Market Targeting
needs. Segmentation can be based on consumers’ demographics, product usage,
geography, lifestyle, and many other characteristics and needs.
Discussion questions
1. What products that you regularly purchase are highly segmented?
2. What are the different segments?
3. Why is segmentation useful to the marketer for these products?
1. Shampoo is usually highly segmented.
2. There are products based on gender, hair type, preferred smell, and price.
3. Segmentation is useful because the marketers can clearly match their product
benefits to the consumer. If you have dandruff, then use our specially formulated When a marketer chooses the segments that they will pursue, they have chosen a
dandruff shampoo. If you are a guy, use our Axe product because it will make you target market. Selection of the correct target market is critical to success of the
look so good women will not be able to resist you. product since the marketer has assumed that this group of consumers has a similar
need with respect to their product or service.
Chapter 3: MARKET SEGMENTATION
Why segmentation is necessary?
-Consumer needs differs
-Differentiation helps products compete
-Segmentation helps identify media
Not all consumers are alike – different customers have different needs. By
segmenting the market and choosing target markets, companies can differentiate
their products to provide the benefits that the segments desire. Once a marketer has
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